Indices add gains in late afternoon session

The domestic indices again added some more gains in late afternoon session, with the Sensex and Nifty gaining above 850 and 240 points, respectively. Among heavy-weights Tata Steel, Sun Pharma and Ultratech Cement exhibited a smart performance. The broader indices, the BSE Mid cap index and Small cap index were trading above half a percent. Traders took support after Finance Minister Nirmala Sitharaman said that the outlay for capital expenditure has been stepped up sharply by 35.4 percent to Rs 7.50 lakh crore for the financial year 2023 from Rs 5.54 lakh crore in FY22. Besides, government will provide various opportunities for debt and equity investments. Sector wise, telecom sector remained in focus, as Finance Minister Nirmala Sitharaman said that the 5G spectrum auction and rollout will happen in FY23.

On the global front, Asian markets rose in limited trade Tuesday following another strong lead from Wall Street fuelled by a rebound in tech firms, while comments from Federal Reserve officials eased concerns that it will embark on an aggressive phase of policy tightening. European markets were trading higher with all the top regional bourses in positive territory, rebounding from a gloomy January, after some optimism from the U.S. boosted global equities.

The BSE Sensex is currently trading at 58,888.75, up by 874.58 points or 1.51% after trading in a range of 57737.66 and 59032.20. There were 23 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.74%, while Small cap index was up by 0.68%.

The top gaining sectoral indices on the BSE were Metal up by 4.56%, Basic Materials up by 2.89%, Capital Goods up by 2.00%, IT up by 1.48% and Healthcare was up by 1.47%, while Oil & Gas down by 0.93%, PSU down by 0.73%, Auto down by 0.73%, Telecom down by 0.30% and Energy was down by 0.23% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 7.38%, Sun Pharma up by 6.14%, Ultratech Cement up by 4.08%, Indusind Bank up by 3.87% and Larsen & Toubro up by 3.12%. On the flip side, Power Grid down by 1.14%, Mahindra & Mahindra down by 1.11%, SBI down by 0.87%, Bharti Airtel down by 0.74% and NTPC down by 0.46% were the top losers.

Meanwhile, Indian manufacturing activity fell in the month of January, but stayed above the 50 mark that separates growth from contraction. As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - eased to 54.0 in January from 55.5 in December.

The report further noted that companies scaled up production in January, amid reports of robust gains in new business. The upturn was marked in the context of historical data, despite easing to the slowest since September 2021. Growth was reportedly stymied by raw material scarcity, inflationary pressures and the intensification of the pandemic.

Similarly, factory orders rose at the slowest rate in four months but one that outpaced its long-run average. International sales likewise increased at a weaker pace. Tamed business optimism contributed to another monthly decline in manufacturing jobs. The fall was modest, but quickened from December. Several companies indicated that workforce numbers were sufficient to cope with current production requirements.

On the price front, there was a further substantial increase in input costs facing goods producers. The overall rate of inflation eased to a four-month low, but remained above its long-run average. Output charges were raised at a quicker rate than in December, albeit one that was moderate overall.

The CNX Nifty is currently trading at 17,585.50, up by 245.65 points or 1.42% after trading in a range of 17244.55 and 17622.40. There were 34 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were Tata Steel up by 7.25%, Sun Pharma up by 6.27%, Hindalco up by 4.36%, JSW Steel up by 4.18% and Ultratech Cement up by 4.07%. On the flip side, BPCL down by 4.61%, Indian Oil down by 3.08%, Tata Motors down by 2.26%, SBI Life down by 1.69% and Mahindra & Mahindra down by 1.11% were the top losers.

In the Asian markets, Nikkei 225 surged 76.50 points or 0.28% to 27,078.48.

European markets were trading higher, UK’s FTSE 100 increased 67.32 points or 0.9% to 7,531.69, France’s CAC increased 73.06 points or 1.04% to 7,072.26 and Germany’s DAX was up by 193.29 points or 1.25% to 15,664.49.